Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Toddsterpatriot
These two exerpts from your post contradict each other: "The money printed by the Fed does not incur an obligation by the taxpayers of the United States." "The Fed doesn't give the new money to the government to spend. Did you write this silliness? Or did Ron Paul?" So Fed notes do not impose an obligation on the taxpayers, BUT, the Fed does not GIVE them to the government. Doesn't that mean the government has to PAY for them? Isn't the government funded by taxpayers? Make no mistake sir, EVERY dollar that the Fed deposits in the government's checking account is a loan, repayable in full, @ interest, by the American taxpayer. The fact that a privately owned bank has the power to create our medium of exchange and sell it back to us is the basis for any learned man's opposition to the Fed. Bankers will defend the system using the argument that we must have a profit motive driving the process of money creation. Thirst for profits teaches bankers to constantly expand the supply of credit, supposedly fueling economic growth. In reality what is happening is that the entirety of human civilization is going deeper and deeper into debt. "...bankers own the earth..." As long as money is created as debt, this statement will be true.
63 posted on 06/20/2007 9:29:12 AM PDT by iconoclast63
[ Post Reply | Private Reply | To 50 | View Replies ]


To: iconoclast63
So Fed notes do not impose an obligation on the taxpayers,

Correct. The taxpayers do not owe me anything for the $20 bill in my pocket.

BUT, the Fed does not GIVE them to the government.

Correct.

Doesn't that mean the government has to PAY for them?

Yes, when the government wants to buy some FRNs, they have to pay for them. Kinda like you pay for FRNs by debiting your bank account at the ATM.

Isn't the government funded by taxpayers? Make no mistake sir, EVERY dollar that the Fed deposits in the government's checking account is a loan, repayable in full,

Yes, every dollar the government borrows must be repaid.

The fact that a privately owned bank has the power to create our medium of exchange and sell it back to us is the basis for any learned man's opposition to the Fed.

If you want to buy something, you have to pay for it. So what?

64 posted on 06/20/2007 9:35:20 AM PDT by Toddsterpatriot (Why are protectionists (and goldbugs) so dumb?)
[ Post Reply | Private Reply | To 63 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson